Charter Communications (CHTR) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Strategic priorities and operational focus

• Growth in connectivity is driven by customer service improvements, product differentiation, and enhanced value messaging, with a focus on mobile and WiFi offerings.

• Major investment initiatives include completing 50% of network upgrades by year-end and finalizing the rural build, both expected to boost competitiveness and free cash flow.

• Operational efficiency is being pursued through expense management, digitization, and automation, aiming to reduce transactions and improve customer experience.

• The Cox integration is expected to deliver operating and transactional synergies, with rapid deployment of the operating model and product offerings post-close.

• Continued focus on generating value for investors through these initiatives.

Competitive environment and customer management

• Broadband market remains highly competitive, with typical seasonality expected in Q2.

• Brand perception challenges are addressed through improved pricing, packaging, and customer service, including faster response times and incentivized NPS improvements.

• Migration to new pricing and packaging is expected to reach 60% of the base by year-end, increasing customer longevity and reducing churn.

• ARPU growth is expected to be flat, with focus on total customer value and bundling rather than product-level ARPU.

• Price lock impacts from Life Unlimited packages will begin to lift in Q4 2024 for two-product bundles and Q4 2025 for three-product bundles.

Financial outlook and efficiency levers

• No change to EBITDA guidance for the year; operational efficiency gains are expected from digitization, automation, and AI deployment.

• AI and network telemetry are enhancing agent and technician efficiency, enabling proactive issue resolution and self-healing networks.

• LEO satellite competition is most notable in rural areas, slowing penetration curves but overall returns on rural builds remain strong.

• Capital deployment prioritizes organic ROI, accretive M&A, leverage management, and share buybacks, with a high bar for increasing leverage.

• Cox transaction is expected to de-lever the business, generate substantial synergies, and provide cash for buybacks while maintaining investment grade ratings.